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THE CANDLESTICK TRADING BIBLE
A bearish inside bar false breakout that occurs
in a bullish trend and it
is seen as a bearish reversal pattern when it is found near an important
level in the market.
This setup can be considered as a continuation pattern if it is traded
with the trend.
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THE CANDLESTICK TRADING BIBLE
Inside Bars false breakouts trading examples
In my own experience, the most important levels that traders should
look for to trade this signal are the following:
-Support and resistance levels, and supply and demand areas
-Fibonacci
retracement levels, particularly, the 50% and 61%
retracement levels.
-21 moving averages and trend lines
in trending markets
-Horizontal levels in range-bound markets
Here is an example of how to trade inside
bar false breakout in a
trending market:
As you see in the chart above,
the market was trending down, that
indicates that sellers are in control of the market, so if you decide to
